Research

27 March 2025

Market Pulse - AI-Fueled Growth, Consolidation Momentum & Capital Efficiency in Focus

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The February 2025 edition of Market Pulse reveals a market brimming with early-year energy, driven by AI innovation, renewed crypto momentum, and M&A activity heating up across both fintech and business tech sectors.

🚀 Fintech: Strong Signals from Nearly Every Vertical

  • Wealth & Capital Markets continues to lead as the fastest-growing segment, driven by AI-powered platforms like valuation software (€55M round from Goldman Sachs Growth) and trading intelligence tools (€40M from One Peak).

  • Banking & Digital Currency saw a resurgence in crypto-related activity, with €927M in funding volume and large deals like a €140M round for embedded finance.

  • Payments remain ripe for consolidation, including a €2.4B exit in luxury retail payments and a €150–300M acquisition of a direct marketing payment business.

  • Lending & Mortgages kept momentum in SME finance with a €125M round from Fortress and €66M for invoice-based lending.

  • Insurance is the outlier this month in terms of funding, but AI-led plays in risk assessment and claims automation are starting to build investor interest.

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💼 Business Tech: Automation and AI Take the Stage

  • Business Process Automation stole the spotlight, attracting €121M for an AI workflow platform and €71M for real estate revenue management tools. It also posted the highest EV/Revenue multiples across the tech verticals.

  • HR & Payroll added two more HR deals to the mix this month, with recruitment and talent platforms under €50M gaining traction. AI-led learning and hiring solutions are driving renewed interest here.

  • Regulatory & Legal Tech remains active at seed stage, focused on AI-driven legal assistants and compliance tools.

  • Tax & Accounting continues to experience consolidation at the micro level across European markets.

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📈 Finch Index vs. Broader Markets

The Finch Index continues to outperform traditional benchmarks like the S&P 500 and Nasdaq across growth, revenue multiples, and EBITDA margins—especially in high-growth verticals like WealthTech and Business Process Automation.


From AI-native tools to B2B infrastructure and financial APIs, February’s data confirms one thing: ambitious, capital-efficient scale-ups are setting the tone for 2025.


🔍 Whether you're an investor, founder, or industry leader, this report gives you the data-driven insights needed to navigate the market with confidence.

📥 Download the full report now and stay ahead of the competition!